How international marketing differs from domestic marketing and global marketing

How international marketing differs from domestic marketing and Global Marketing?

(International Marketing versus Domestic Marketing versus Global Marketing) In this article you will learn about: 

What is the definition of International Marketing?

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What is the definition of Domestic Marketing?

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What is the definition of Global Marketing?

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What is Globalization?

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What is Globalization in Marketing terms?

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What is the difference between Adaptation and Standardization in International Business?

What is the definition of International Marketing?

International marketing means the application of marketing activities (marketing mix) and business capabilities in more than one nation (to go for international business).

International marketing is all about communication to various multi-cultural environments and more specifically for reaching respective target segments having different mindset, aesthetics, dress code, family roles, relationships, working habits and technology interests.

International business is a type of Market Development Strategy in Ansoff’s Matrix, but also as a business it is unstable and could suffer from currency exchange rate problems.

What is the definition of Domestic Marketing?

It’s your marketing at the country of origin at which you had started your business at. It is called domestic because it’s focusing on the marketing of products and service to this specific target segments existing in the very same country, rather than going for international business.

Domestic marketing is about communicating the product positioning messages to one culture, one language to the target segment whom are all having the same mindset, aesthetics, dress code, family roles, relationships, working habits and technology interest.

Domestic marketing is providing a ground stable business for the business owners; relatively a steady business environment and they don’t suffer from exchange rate problems as those who are operating in an international business environment.

What is the definition of Global Marketing?

Global Marketing is about standardization of marketing activities; Marketing Mix; especially Integrated Marketing Communications among all countries. So, all countries are having the same marketing activities, standardized marketing strategy and same product message.

What is Globalization?

Globalization is the transformation of a domestic product to a global one.

What is Globalization in Marketing terms?

It’s about standardizing the same marketing activities, marketing strategy and marketing messages across both domestic and international business.

I am going to share with you a report on the top 10 biggest corporations worldwide in 2009: 1. Royal Dutch Shell 2. Exxon Mobil 3. Wal-Mart Stores 4. BP 5. Chevron 6. Total 7. ConocoPhillips 8. ING Group 9. Sinopec 10. Toyota Motor

While the top 10 largest Global corporations in terms of profit are: http://money.cnn.com/magazines/fortune/global500/2009/performers/companies/pro fits/ And the top biggest employers in Global Marketing during 2009 are: http://money.cnn.com/magazines/fortune/global500/2009/performers/companies/big gest/ And the top Global Money Losers in 2009 are: http://money.cnn.com/magazines/fortune/global500/2009/losers/ The source of the above data is: http://money.cnn.com

What is the difference between Adaptation and Standardization in International Business?

Adaptation is about applying the same marketing strategy but with local adaptation in each country, while standardization is about standardizing the same marketing strategies and tactics in all international business environments (globalization).

Example on Adaptation: PEPSI Global Corporation. They are applying the same competitive advantage strategy worldwide; Differentiation Marketing Strategy, and always telling their customers how much their taste is different than existing competitor. PEPSI adaption strategy exists in the marketing mix: 1. Their pricing strategy depend on the economical analysis of each country; for

example PEPSI Price in Egypt is about 0.4$ (=2.25 Egyptian Pound) since 2008.

PEPSI in Saudi Arabia is about 0.26$ (=1 Saudi Reyal) since the last ten years, and then it became 0.4$ since Jan 2010.

PEPSI in USA from a regular can-selling machine is about 1-2 $.

2. Their Marketing Communications Mix: Especially advertising, Public Relations

and sales promotion are distinctively different from a country to the other. In Advertising, they are communicating the messages that are adapting to mindset, aesthetics, dress code, family roles, relationships, working habits and technology interests of each target segment in each country.

In the following model created by Doole & Lowe in 2001, I am going to explain the difference between adaptation and standardization strategies through the following diagram: